Morgan Stanley strategist Wilson says the S&P 500 correction is nearing its final stage

Correction driven by Middle East war-related risk repricing Forward P/E has compressed ~17%, in line with past non-recession growth scares The market has largely priced in the rise in oil prices Breadth is weak: >50% of Russell 3000 constituents down >20% Signals suggest the correction is closer to the end than the beginning The market is less complacent on growth risks than the investor consensus implies Key risk: rising yields — US 10yr nearing ~4.5%, a level that historically pressures equity valuations